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HomeMy Public PortalAbout019-2023 - MEMO 1 TO: Richmond Common Council FROM: Beth Fields CC: David M. Snow, Mayor Andrew J Sickmann, Corporate Counsel Doug Goss, Tax Abatement Chair RE: Ordinance 19-2023 Ordinance 19-2023 is a Special Ordinance Replacing and Amending Minimum Criteria and Alternative Deduction Schedules for Property Owners Requesting Deductions from Assessed Value of Qualified Property within an Economic Revitalization Area. This ordinance provides a new tax abatement scoring system, eliminating the need for multiple ordinances. The main changes include reducing the maximum length of time for personal property abatements to five years from ten and the floor for tax abatement investment to $.5M. This new scoring system was developed by the administration in collaboration with members of the tax abatement committee and the Economic Development Corporation of Wayne County. Ordinance 19-2023 will allow the City to continue providing an incentive to businesses considering locating or expanding their business in the City of Richmond while retaining a higher percentage of tax revenue to expand the Midwest Industrial Park and complete necessary infrastructure projects, such as the sewer expa nsion. Attached please find a spreadsheet scoring existing tax abatements with the new system, showing the additional revenue that would be realized on similar tax abatement requests. This comparison was made possible thanks to input from Valerie Shaffer, President, Economic Development Corporation of Wayne County. If you have questions or would like additional information, please let me know, I’m happy to schedule a time to meet or talk via phone prior to the meeting. I can be reached at bfields@richmondindiana.gov or 765.983.7211. MEMO CITY OF RICHMOND 50 NORTH 5TH STREET RICHMOND, INDIANA 47374 David M. Snow, Mayor Beth Fields, Director of Strategic Initiatives